Evergrande Dollar Bonds Hit by Report of Suspended Loan Payments

The transcript discusses the financial troubles of Evergrande, a major Chinese developer, and its potential impact on the Chinese economy. The conversation highlights the risks of aggressive deleveraging in China's property sector, which could lead to economic instability. Evergrande's financial status is precarious, with significant debt and insufficient cash flow, leading to downgrades by rating agencies. The discussion also touches on the potential for contagion within China's property market but notes that international contagion has not yet been observed.

Who is Damian Sassier?

• A property developer

• A financial analyst at Fitch

• A Bloomberg intelligence strategist

• A Chinese government official

What is the main concern regarding the Chinese property sector?

• Growth instability due to aggressive deleveraging

• Government intervention in property sales

• High demand for construction materials

• Increase in property prices

What is the rating given to Evergrande by Fitch?

• Triple A

• Single B

• Double C

• Triple C

How much cash does Evergrande have on hand?

• 25 billion

• 50 billion

• 13.4 billion

• 37 billion

What is the potential risk mentioned for other property managers in China?

• Contagion risk

• Increased sales

• Government subsidies

• Higher interest rates